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On December 31, 2021, Priority Company purchased 80% of the common stock of Subsidiary Company for $1,550,000 On this date, Subsidiary had total net asset

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On December 31, 2021, Priority Company purchased 80% of the common stock of Subsidiary Company for $1,550,000 On this date, Subsidiary had total net asset of $650,000 (common stock $100,000; other paid-in capital. $200,000; and retained earnings $350,000). Any excess of cost over book value is due to the under or overvaluation of certain assets and liabilities. Assets and liabilities with differences in book and fair values are provided in the following table: Current se Accounts receivable Inventory Land Buildings and equipment, net Current liabilities Long-term debt Book Value $500,000 200,000 800.000 100,000 700,000 800,000 850,000 Fair Valus S800,000 150.000 800,000 600,000 900.000 875.000 930.000 Remaining excess, if any, is due to goodwill. Instructions 30 points (December 31, 2021: Using both the information presented in situation C, you must analyze and determine mplieit value of the investment, when it corresponds to the controlling interest and the non-controlling interest, e the schedule to determine and distribute the excess of the cost over the book value and determine mount that corresponds to goodwill, and complete the worksheets to present the consolidation of both companies. Trial Balance Accounts Subsidiary Compnay Eliminations or Adjustments Debit Credit Consolidat Balance Sh Priority Company Assets Current Assets Accounts Receivable Inventory Investment in Sub Co. Land Buildings and Equipment 500,000 200,000 800,000 425.000 530,000 1.600.000 1.550,000 225.000 400,000 100,000 700,0001 Total 4,730,000 2,300,000 Liabilities and Stockholders' Equity Current Liabilities Long term Liabilities 2,100,000 1,000,000 800,000 850,000 Common Stock Paid-in Capital in Excess of Par Retained Earnings 900,000 670,000 60,000 100,0001 200,000 350,000 Total 4.730,000 2.300,000

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